FAQs

What does a mortgage broker do?

In a recent industry survey when asked ' Why would you use a mortgage broker', one response was: "...using a mortgage broker is like using a Sherpa on a mountain hike. You could probably do the hike without them but it makes the whole experience a lot easier.”

You go to someone trained to help you with your specific need. If you have a toothache, you go to a dentist not a florist. If your car is broken you take it to a mechanic not a librarian. It’s the same when you need a loan. Mortgage brokers are professionals in the home loan industry. They have access to a wide variety of lenders and loans. This means your broker can find a loan that's just right for you.

 

Do you charge a fee for your service?

We generally do not charge a fee for residential loans. There is a myth that it costs more to use a mortgage broker. Brokers get paid by the lenders for bringing new business to them, doing most of the document collection, application preparation, processing and follow up until settlement stage. The costs of obtaining the loan are the same if you were to deal directly with the lender. Though quite often we are able to obtain a fee waiver, that you can be pleasantly surprised. Important to mention that it does not impact on the interest rate at all or the level of service.

If a fee for service is charged, it'll be disclosed upfront so you know what you will be up for right from the start.

 

Don’t you just recommend the lender who pays you the most commission?

Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act (or NCCP), that is designed to protect consumers and ensure ethical and professional standards in the finance industry. Our job, our only job, is to find the right loan suitable for your needs. We also will tell upfront what commission will be be paid from the lender.

 

How much can I borrow?

This is dependent on your current income and expenses. Each lender has it's own way of assessing the borrowing capacity. We'll work together based on your circumstances. Give us a call and we can go into your options in more detail, or check out the loan calculator page of our site!

 

Should I go fixed or variable?

There is no right or wrong answer here. After we discuss all the options available to you, your needs and financial circumstances, we are confident you will be in position to make the right decision yourself.

 

I am not in your area, can we still work together?

Sure thing! We are mobile and can come to you. Today's technological advances allow us to connect with our customers no matter where they are. As they say, we're only a click away.

 

Which lenders do you deal with?

Through our aggregator Connective we have access to many lenders – these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice.

 

Who sets interest rates?

The Reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.

 

Why should I use a mortgage broker if I can go with a bank?

When we talk about a ‘loan product’ we are referring to the thousands of options available in the market. Each lender has a variety of different loan options – package loans, basic loans, variable or fixed rate, interest only, interested in advance, introductory rate, re-draw facilities, plant and equipment loans and so on…

The issues you face as a consumer is ‘which loan is right for me? Which product or package has the options that will save me the most, suit my day to day banking needs, offer the features and flexibility that will work best for me.’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender, not knowing if that's the best one for you. As your broker, we are there for you at every step and do all the leg work for you. We are across many lenders and their loan products. Our sole purpose is to guide you and find the right loan for your needs. Your full financial situation would need to be reviewed prior to acceptance of any product or offer.